Moody’s downgrades Dawn

Moody's Investors Service said it downgraded Dawn Acquisitions LLC’s corporate family rating to B3 from B2 and its probability of default rating to B3-PD from B2-PD. Dawn's $600 million senior secured first-lien credit facility, which consists of a $550 million seven-year term loan and a $50 million five-year revolver, was downgraded to B3 from B2.

“These downgrades are the result of Moody’s expectations for continued elevated leverage (Moody’s adjusted) due to revenue and EBITDA growth below previous expectations,” Moody’s said in a press release.

The agency said it expects Dawn to have leverage around 7.5x (Moody's adjusted) at the end of 2020. “Moody’s forecasts free cash flow to be roughly breakeven during 2020 and 2021 due to currently modest capital spending,” the agency said.

The outlook is stable.

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